Importing from China: A Step-by-Step Guide
By many measures, China is the largest economy in the world. This makes it an undeniable force in international trade. Importing from China has proven to be a successful global sourcing strategy for many businesses. This presents you with great opportunities as a buyer and distributor. This is a step-by-step guide from the perspective of us, a local freight forwarder serving Chinese exporters and global importers for many years. Let’s take a look at how to import from China and what you can do to make the process smoother and more efficient. 1. Know your rights
The first step in becoming an importer of goods is to determine whether you have the legal right to import a particular commodity.
The country of landing of your exported Chinese goods may impose guidance on certain items, and it is best to be aware of restrictions that may apply.
China also has its own set of rules, such as restricting the export of imitation designer clothing or goods such as handbags and animal by-products.
Familiarize yourself with the import and export laws of China and your own country to avoid any legal problems.
The following are products that are generally prohibited from exporting from China and should be avoided:
Meat, poultry and animal by-products
seed
fruits and vegetables
Cosmetics, medical products and pharmaceuticals
any flammable fabric
tobacco products
Dynamite
precious metal
Any brand product, true or false
Alcohol (without proper license)
Any type of boat or motor vehicle (without proper license)
2. Check the product
When you find suppliers, ask them for product samples and information about manufacturing plants.
They should be willing to provide this service so you can see the quality of the product.
While price is important, you also want to ensure quality that allows you to support your product with confidence.
3. Classify your shipment and calculate landed cost.
Determine the 10-digit tariff classification number for each item you want to import. These numbers are used along with the Certificate of Origin to determine the duty rate you must pay when importing. Then do the land cost calculation.
Please pay attention to Incoterms and calculate the total landed cost before placing your order. For example, FOB means adding the following three together.
Get product prices from suppliers
Charge freight forwarder (if home delivery is enough)
Get customs clearance, duties and taxes, land transportation fees from landing to your warehouse
Getting landed costs early is critical; no one wants to lose customers (because estimated costs are too high) or benefits (estimated costs are too low). If it is higher than you expected, you can try to find ways to reduce the cost element. If it fits your budget, you can go ahead and start the process.
You may not know the exact cost of something until your shipment arrives. In these cases, you need to estimate costs as accurately as possible. Get an estimate from the company you work with and see the cost of previous shipments to see how much you’ll be charged.
Unexpected charges that may arise during shipping can sometimes cause your total landed cost to fluctuate, which is completely normal. While you should determine costs as much in advance as possible, an informed estimate can go a long way. Then, once you have the actual final costs, check them against the estimates you used
4. Decide on your product and find a supplier
One of the most critical parts of your business is finding a great product for resale.
Do some research and find out what’s selling well, even better if that’s something you know at least.
In this way, you can feel comfortable and confident when marketing your products.
Check the profitability of your favorite product and make sure it has a market.
Calculate the cost of the purchase versus the price at which you can reasonably sell.
Be sure to do your due diligence and find out what is legally imported.
Remember that there are restrictions on many items; be careful to avoid these.
Failure to do so may result in penalties and fines, as well as loss of product. (Illegal products will be detained or destroyed).
Once the product is identified, list the Chinese suppliers who can supply you with the product.
Exporters often look for foreign partners through trade websites and online forums.
There are online purchasing directories available, or you can use a professional purchasing company.
For beginners who have no experience dealing with Chinese exporters, a sourcing company may be a better option.
This allows you to connect with trusted sources and gain access to suppliers you might not be able to find yourself.
But keep in mind that this will cost you a finder fee of 3% to 15% of your purchase price.
5. Arrange your shipment.
There are many costs associated with transporting goods, including container fees, packing fees, terminal handling fees, and broker fees. To get a complete picture of shipping costs, each of these factors should be taken into account.
Once you are satisfied with the shipping quote, you will need to send us or forward your supplier’s contact details. We’ll take it from there. We will be in close contact with you and your suppliers to ensure fast and safe transportation of your goods.
Check details:
1. Top 2 things to consider when shipping from China
2. Shipping
3. Air Freight
4. Express service
we suggest:
1. Always take into account that there may be delays in the process, for example, the goods may not be produced on time, the ship may not sail on time, and the goods may be detained by customs. Prepare and plan accordingly.
Don’t expect your cargo to leave the port as soon as the factory is finished. Because it takes at least 1~2 days for your goods to be transported from the factory to the port. The customs declaration process requires your goods to stay at the port for at least 1~2 days.
Also, in some cases there is only one route frequency per week. Miss a day this week and you’ll have to wait until next week.
2. Choose a good freight forwarding partner.
Logistics is a highly valued aspect of modern business. Shipping costs include direct and indirect costs of transporting a product from the origin to the destination market.
If they do it right, choose a good logistics provider; they guarantee smooth operations, manageable costs and continuous cash flow.
If they get it wrong, at least they may add cost and waste. At worst, they could face a failed business model that eventually has to shut down. If the logistics is not managed well, the company will continue to lose money.
6. Track your shipment and prepare it for arrival.
Shipping goods internationally takes time. For example, it takes on average about 14 days for a shipment out of China to reach the US West Coast, or 30 days to reach the US East Coast.
Typically, the destination agent listed on the bill of lading will notify the consignee with a notification of arrival within 5 days or less of arrival at the port.
When the cargo arrives in the United States, the importer of record (i.e. the owner, buyer or a licensed customs broker designated by the owner, buyer or consignee) will present the cargo’s entry documents to the port supervisor at the port of the cargo. Entrance.
7. Get your goods.
Once the goods arrive, arrange for your customs broker to clear them through customs (and quarantine if applicable). If all goes well, you are entitled to pickup.
If you choose our home delivery service, you only need to wait for your goods to arrive at the address you specify.
Once you’ve received your shipment and determined the quality, packaging, instructions, and labels, it’s a good idea to email your supplier to let them know that you’ve received the shipment but haven’t reviewed it yet. Tell them that you will be in touch after viewing the item and would like to place another order. |
